Management is a universal phenomenon. It is a very popular and widely used term.
All organizations - business, political, cultural or social are involved in
management because it is the management which helps and directs the various
efforts towards a definite purpose. According to Harold Koontz,
“Management is an art of getting things done through and with the people in
formally organized groups. It is an art of creating an environment in which
people can perform and individuals and can co-operate towards attainment of
group goals”. According to F.W. Taylor, “Management is an art of
knowing what to do, when to do and see that it is done in the best and cheapest
way”.
Management is a purposive activity. It is something
that directs group efforts towards the attainment of certain pre - determined
goals. It is the process of working with and through others to effectively
achieve the goals of the organization, by efficiently using limited resources
in the changing world. Of course, these goals may vary from one enterprise to
another. E.g.: For one enterprise it may be launching of new products by
conducting market surveys and for other it may be profit maximization by
minimizing cost.
Management involves creating an internal environment:
- It is the management which puts into use the various factors of production.
Therefore, it is the responsibility of management to create such conditions
which are conducive to maximum efforts so that people are able to perform their
task efficiently and effectively. It includes ensuring availability of raw
materials, determination of wages and salaries, formulation of rules &
regulations etc.
Therefore, we can say that good management includes
both being effective and efficient. Being effective means doing the appropriate
task i.e, fitting the square pegs in square holes and round pegs in round
holes. Being efficient means doing the task correctly, at least possible cost
with minimum wastage of resources.
Management can be defined in detail in following
categories :
- Management as a Process
- Management as an Activity
- Management as a Discipline
- Management as a Group
- Management as a Science
- Management as an Art
- Management as a Profession
Management as a Process
As a process, management refers to a series of inter-related functions. It
is the process by which management creates, operates and directs purposive
organization through systematic, coordinated and co-operated human efforts,
according to George R. Terry, “Management is a distinct process consisting of
planning, organizing, actuating and controlling, performed to determine and
accomplish stated objective by the use of human beings and other resources”. As
a process, management consists of three aspects:
- Management is a social process - Since human factor is
most important among the other factors, therefore management is concerned
with developing relationship among people. It is the duty of management to
make interaction between people - productive and useful for obtaining
organizational goals.
- Management is an integrating process - Management undertakes the
job of bringing together human physical and financial resources so as to
achieve organizational purpose. Therefore, is an important function to
bring harmony between various factors.
- Management is a continuous process - It is a never ending
process. It is concerned with constantly identifying the problem and
solving them by taking adequate steps. It is an on-going process.
Management as an Activity
Like various other activities performed by human beings such as writing,
playing, eating, cooking etc, management is also an activity because a manager
is one who accomplishes the objectives by directing the efforts of others.
According to Koontz, “Management is what a manager does”. Management as an activity
includes -
- Informational activities - In the functioning of business enterprise,
the manager constantly has to receive and give information orally or in
written. A communication link has to be maintained with subordinates as
well as superiors for effective functioning of an enterprise.
- Decisional activities - Practically all types of managerial
activities are based on one or the other types of decisions. Therefore,
managers are continuously involved in decisions of different kinds since
the decision made by one manager becomes the basis of action to be taken
by other managers. (E.g. Sales Manager is deciding the media & content
of advertising).
- Inter-personal activities - Management involves achieving goals through
people. Therefore, managers have to interact with superiors as well as the
sub-ordinates. They must maintain good relations with them. The
inter-personal activities include with the sub-ordinates and taking care
of the problem. (E.g. Bonuses to be given to the sub-ordinates).
Management as a Discipline
Management as a discipline refers to that branch of knowledge which is
connected to study of principles & practices of basic administration. It
specifies certain code of conduct to be followed by the manager & also
various methods for managing resources efficiently.
Management as a discipline specifies certain code of conduct for managers
& indicates various methods of managing an enterprise. Management is a
course of study which is now formally being taught in the institutes and
universities after completing a prescribed course or by obtaining degree or
diploma in management, a person can get employment as a manager.
Any branch of knowledge that fulfils following two requirements is known as
discipline:
- There
must be scholars & thinkers who communicate relevant knowledge through
research and publications.
- The
knowledge should be formally imparted by education and training
programmes.
Since management satisfies both these problems, therefore it qualifies to
be a discipline. Though it is comparatively a new discipline but it is growing
at a faster pace.
Management as a Group
Management as a group refers to all those persons who perform the task of
managing an enterprise. When we say that management of ABC & Co. is good,
we are referring to a group of people those who are managing. Thus as a group
technically speaking, management will include all managers from chief executive
to the first - line managers (lower-level managers). But in common practice
management includes only top management i.e. Chief Executive, Chairman, General
Manager, Board of Directors etc. In other words, those who are concerned with
making important decisions, these persons enjoy the authorities to use
resources to accomplish organizational objectives & also responsibility to
for their efficient utilization.
Management as a group may be looked upon in 2 different ways:
- All
managers taken together.
- Only
the top management
The interpretation depends upon the context in which these terms are used.
Broadly speaking, there are 3 types of managers -
- Patrimonial / Family Manager: Those who have become
managers by virtue of their being owners or relatives of the owners of
company.
- Professional Managers: Those who have been appointed on account of
their specialized knowledge and degree.
- Political Managers / Civil Servants: Those who manage public
sector undertakings.
Managers have become a part of elite group of society as they enjoy higher
standard of living in the society.
Management as a Science
Science is a systematic body of knowledge pertaining to a specific field of
study that contains general facts which explains a phenomenon. It establishes
cause and effect relationship between two or more variables and underlines the
principles governing their relationship. These principles are developed through
scientific method of observation and verification through testing.
Science is characterized by following main features:
- Universally acceptance principles - Scientific principles
represents basic truth about a particular field of enquiry. These
principles may be applied in all situations, at all time & at all
places. E.g. - law of gravitation which can be applied in all countries
irrespective of the time.
Management also contains
some fundamental principles which can be applied universally like the Principle
of Unity of Command i.e. one man, one boss. This principle is applicable to all
type of organization - business or non business.
- Experimentation & Observation - Scientific principles are
derived through scientific investigation & researching i.e. they are
based on logic. E.g. the principle that earth goes round the sun has been
scientifically proved.
Management principles
are also based on scientific enquiry & observation and not only on the
opinion of Henry Fayol. They have been developed through experiments &
practical experiences of large no. of managers. E.g. it is observed that fair
remuneration to personal helps in creating a satisfied work force.
- Cause & Effect Relationship - Principles of science lay
down cause and effect relationship between various variables. E.g. when
metals are heated, they are expanded. The cause is heating & result is
expansion.
The same is true for
management, therefore it also establishes cause and effect relationship. E.g.
lack of parity (balance) between authority & responsibility will lead to
ineffectiveness. If you know the cause i.e. lack of balance, the effect can be
ascertained easily i.e. in effectiveness. Similarly if workers are given
bonuses, fair wages they will work hard but when not treated in fair and just
manner, reduces productivity of organization.
- Test of Validity & Predictability - Validity of scientific
principles can be tested at any time or any number of times i.e. they
stand the test of time. Each time these tests will give same result.
Moreover future events can be predicted with reasonable accuracy by using
scientific principles. E.g. H2 & O2 will always give H2O.
Principles of management
can also be tested for validity. E.g. principle of unity of command can be
tested by comparing two persons - one having single boss and one having 2
bosses. The performance of 1st person will be better than 2nd.
It cannot be denied that management has a systematic body of knowledge but
it is not as exact as that of other physical sciences like biology, physics,
and chemistry etc. The main reason for the inexactness of science of management
is that it deals with human beings and it is very difficult to predict their
behavior accurately. Since it is a social process, therefore it falls in the
area of social sciences. It is a flexible science & that is why its
theories and principles may produce different results at different times and
therefore it is a behavior science. Ernest Dale has called it as a Soft
Science.
Management as an Art
Art implies application of knowledge & skill to trying about
desired results. An art may be defined as personalized application of general
theoretical principles for achieving best possible results. Art has the
following characters -
- Practical Knowledge: Every art requires
practical knowledge therefore learning of theory is not sufficient. It is
very important to know practical application of theoretical principles.
E.g. to become a good painter, the person may not only be knowing
different colour and brushes but different designs, dimensions, situations
etc to use them appropriately. A manager can never be successful just by
obtaining degree or diploma in management; he must have also know how to
apply various principles in real situations by functioning in capacity of
manager.
- Personal Skill: Although
theoretical base may be same for every artist, but each one has his own
style and approach towards his job. That is why the level of success and
quality of performance differs from one person to another. E.g. there are
several qualified painters but M.F. Hussain is recognized for his style.
Similarly management as an art is also personalized. Every manager has his
own way of managing things based on his knowledge, experience and
personality, that is why some managers are known as good managers (like
Aditya Birla, Rahul Bajaj) whereas others as bad.
- Creativity: Every artist has
an element of creativity in line. That is why he aims at producing
something that has never existed before which requires combination of
intelligence & imagination. Management is also creative in nature like
any other art. It combines human and non-human resources in useful way so
as to achieve desired results. It tries to produce sweet music by
combining chords in an efficient manner.
- Perfection through practice: Practice makes a
man perfect. Every artist becomes more and more proficient through
constant practice. Similarly managers learn through an art of trial and
error initially but application of management principles over the years
makes them perfect in the job of managing.
- Goal-Oriented: Every art is
result oriented as it seeks to achieve concrete results. In the same
manner, management is also directed towards accomplishment of
pre-determined goals. Managers use various resources like men, money,
material, machinery & methods to promote growth of an organization.
Thus, we can say that management is an art therefore it requires
application of certain principles rather it is an art of highest order because
it deals with moulding the attitude and behavior of people at work towards
desired goals.
Management
as both Science and Art
Management is both an art and a science. The above mentioned
points clearly reveals that management combines features of both science as
well as art. It is considered as a science because it has an organized body of
knowledge which contains certain universal truth. It is called an art because
managing requires certain skills which are personal possessions of managers.
Science provides the knowledge & art deals with the application of
knowledge and skills.
A manager to be successful in his profession must acquire the
knowledge of science & the art of applying it. Therefore management is a
judicious blend of science as well as an art because it proves the principles
and the way these principles are applied is a matter of art. Science teaches to
’know’ and art teaches to ’do’. E.g. a person cannot become a good singer
unless he has knowledge about various ragas & he also applies his personal
skill in the art of singing. Same way it is not sufficient for manager to first
know the principles but he must also apply them in solving various managerial
problems that is why, science and art are not mutually exclusive but they are
complementary to each other (like tea and biscuit, bread and butter etc.).
The old saying that “Manager are Born” has been rejected in favor
of “Managers are Made”. It has been aptly remarked that management is the
oldest of art and youngest of science. To conclude, we can say that science is
the root and art is the fruit.
Management as a Profession
Over a large few decades, factors such as growing size of business unit,
separation of ownership from management, growing competition etc have led to an
increased demand for professionally qualified managers. The task of manager has
been quite specialized. As a result of these developments the management has
reached a stage where everything is to be managed professionally.
A profession may be defined as an occupation that requires specialized
knowledge and intensive academic preparations to which entry is regulated by a
representative body. The essentials of a profession are:
- Specialized Knowledge - A profession must have a systematic body of
knowledge that can be used for development of professionals. Every
professional must make deliberate efforts to acquire expertise in the
principles and techniques. Similarly a manager must have devotion and
involvement to acquire expertise in the science of management.
- Formal Education & Training - There are no. of
institutes and universities to impart education & training for a
profession. No one can practice a profession without going through a
prescribed course. Many institutes of management have been set up for
imparting education and training. For example, a CA cannot audit the A/C’s
unless he has acquired a degree or diploma for the same but no minimum
qualifications and a course of study has been prescribed for managers by
law. For example, MBA may be preferred but not necessary.
- Social Obligations - Profession is a source of livelihood but
professionals are primarily motivated by the desire to serve the society.
Their actions are influenced by social norms and values. Similarly a
manager is responsible not only to its owners but also to the society and
therefore he is expected to provide quality goods at reasonable prices to
the society.
- Code of Conduct - Members of a profession have to abide by a
code of conduct which contains certain rules and regulations, norms of
honesty, integrity and special ethics. A code of conduct is enforced by a
representative association to ensure self discipline among its members.
Any member violating the code of conduct can be punished and his
membership can be withdrawn. The AIMA has prescribed a code of conduct for
managers but it has no right to take legal action against any manager who
violates it.
- Representative Association - For the regulation of profession, existance
of a representative body is a must. For example, an institute of Charted
Accountants of India establishes and administers standards of competence
for the auditors but the AIMA however does not have any statuary powers to
regulate the activities of managers.
From above discussion, it is quite clear that management fulfills several
essentials of a profession, even then it is not a full fledged profession
because: -
- It does
not restrict the entry in managerial jobs for account of one standard or
other.
- No
minimum qualifications have been prescribed for managers.
- No
management association has the authority to grant a certificate of
practice to various managers.
- All
managers are supposed to abide by the code formulated by AIMA,
- Competent
education and training facilities do not exist.
- Managers
are responsible to many groups such as shareholders, employees and
society. A regulatory code may curtail their freedom.
- Managers
are known by their performance and not mere degrees.
- The
ultimate goal of business is to maximize profit and not social welfare.
That is why Haymes has rightly remarked, “The slogan for management is
becoming - ’He who serves best, also profits most’.”
Features of Management
Management is an activity concerned with guiding human and physical
resources such that organizational goals can be achieved. Nature of management
can be highlighted as: -
- Management is Goal-Oriented: The success of any management activity is
assessed by its achievement of the predetermined goals or objective.
Management is a purposeful activity. It is a tool which helps use of human
& physical resources to fulfill the pre-determined goals. For example,
the goal of an enterprise is maximum consumer satisfaction by producing
quality goods and at reasonable prices. This can be achieved by employing
efficient persons and making better use of scarce resources.
- Management integrates Human, Physical and Financial Resources: In
an organization, human beings work with non-human resources like machines.
Materials, financial assets, buildings etc. Management integrates human
efforts to those resources. It brings harmony among the human, physical
and financial resources.
- Management is Continuous: Management is an ongoing process. It
involves continuous handling of problems and issues. It is concerned with
identifying the problem and taking appropriate steps to solve it. E.g. the
target of a company is maximum production. For achieving this target
various policies have to be framed but this is not the end. Marketing and
Advertising is also to be done. For this policies have to be again framed.
Hence this is an ongoing process.
- Management is all Pervasive: Management is required in all types of
organizations whether it is political, social, cultural or business
because it helps and directs various efforts towards a definite purpose.
Thus clubs, hospitals, political parties, colleges, hospitals, business
firms all require management. When ever more than one person is engaged in
working for a common goal, management is necessary. Whether it is a small
business firm which may be engaged in trading or a large firm like Tata
Iron & Steel, management is required everywhere irrespective of size
or type of activity.
- Management is a Group Activity: Management is very much
less concerned with individual’s efforts. It is more concerned with
groups. It involves the use of group effort to achieve predetermined goal
of management of ABC & Co. is good refers to a group of persons
managing the enterprise.
Levels of Management
The term “Levels of Management’ refers to a line of
demarcation between various managerial positions in an organization. The number
of levels in management increases when the size of the business and work force
increases and vice versa. The level of management determines a chain of
command, the amount of authority & status enjoyed by any managerial
position. The levels of management can be classified in three broad categories:
- Top level / Administrative level
- Middle level / Executory
- Low level / Supervisory / Operative / First-line
managers
Managers at all these levels perform different functions. The role
of managers at all the three levels is discussed below:
LEVELS OF MANAGEMENT
1.
Top Level of Management
It consists of board of directors, chief
executive or managing director. The top management is the ultimate source of
authority and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.
The role of the top management can be
summarized as follows -
a.
Top management lays down the
objectives and broad policies of the enterprise.
b.
It issues necessary instructions
for preparation of department budgets, procedures, schedules etc.
c.
It prepares strategic plans &
policies for the enterprise.
d.
It appoints the executive for
middle level i.e. departmental managers.
e.
It controls & coordinates the
activities of all the departments.
f.
It is also responsible for
maintaining a contact with the outside world.
g.
It provides guidance and
direction.
h.
The top management is also
responsible towards the shareholders for the performance of the enterprise.
2.
Middle Level of Management
The branch managers and departmental managers
constitute middle level. They are responsible to the top management for the
functioning of their department. They devote more time to organizational and
directional functions. In small organization, there is only one layer of middle
level of management but in big enterprises, there may be senior and junior
middle level management. Their role can be emphasized as -
a.
They execute the plans of the
organization in accordance with the policies and directives of the top
management.
b.
They make plans for the sub-units
of the organization.
c.
They participate in employment
& training of lower level management.
d.
They interpret and explain
policies from top level management to lower level.
e.
They are responsible for coordinating
the activities within the division or department.
f.
It also sends important reports
and other important data to top level management.
g.
They evaluate performance of
junior managers.
h.
They are also responsible for
inspiring lower level managers towards better performance.
3.
Lower Level of Management
Lower level is also known as supervisory /
operative level of management. It consists of supervisors, foreman, section
officers, superintendent etc. According to R.C.
Davis, “Supervisory management refers to those executives whose work has to
be largely with personal oversight and direction of operative employees”. In
other words, they are concerned with direction and controlling function of
management. Their activities include -
a.
Assigning of jobs and tasks to
various workers.
b.
They guide and instruct workers
for day to day activities.
c.
They are responsible for the
quality as well as quantity of production.
d.
They are also entrusted with the
responsibility of maintaining good relation in the organization.
e.
They communicate workers
problems, suggestions, and recommendatory appeals etc to the higher level and
higher level goals and objectives to the workers.
f.
They help to solve the grievances
of the workers.
g.
They supervise & guide the
sub-ordinates.
h.
They are responsible for
providing training to the workers.
i.
They arrange necessary materials,
machines, tools etc for getting the things done.
j.
They prepare periodical reports
about the performance of the workers.
k.
They ensure discipline in the
enterprise.
l.
They motivate workers.
m.
They are the image builders of
the enterprise because they are in direct contact with the workers.
Objectives of Management
The main objectives of management are:
- Getting Maximum Results with Minimum Efforts - The
main objective of management is to secure maximum outputs with minimum
efforts & resources. Management is basically concerned with thinking
& utilizing human, material & financial resources in such a manner
that would result in best combination. This combination results in reduction
of various costs.
- Increasing the Efficiency of factors of Production - Through
proper utilization of various factors of production, their efficiency can
be increased to a great extent which can be obtained by reducing spoilage,
wastages and breakage of all kinds, this in turn leads to saving of time,
effort and money which is essential for the growth & prosperity of the
enterprise.
- Maximum Prosperity for Employer & Employees - Management
ensures smooth and coordinated functioning of the enterprise. This in turn
helps in providing maximum benefits to the employee in the shape of good
working condition, suitable wage system, incentive plans on the one hand
and higher profits to the employer on the other hand.
- Human betterment & Social Justice - Management serves as a
tool for the upliftment as well as betterment of the society. Through
increased productivity & employment, management ensures better
standards of living for the society. It provides justice through its
uniform policies.
Importance of Management
- It helps in Achieving Group Goals - It arranges the factors
of production, assembles and organizes the resources, integrates the
resources in effective manner to achieve goals. It directs group efforts
towards achievement of pre-determined goals. By defining objective of
organization clearly there would be no wastage of time, money and effort.
Management converts disorganized resources of men, machines, money etc.
into useful enterprise. These resources are coordinated, directed and
controlled in such a manner that enterprise work towards attainment of
goals.
- Optimum Utilization of Resources - Management utilizes all
the physical & human resources productively. This leads to efficacy in
management. Management provides maximum utilization of scarce resources by
selecting its best possible alternate use in industry from out of various
uses. It makes use of experts, professional and these services leads to
use of their skills, knowledge, and proper utilization and avoids wastage.
If employees and machines are producing its maximum there is no under
employment of any resources.
- Reduces Costs - It gets maximum results through minimum
input by proper planning and by using minimum input & getting maximum
output. Management uses physical, human and financial resources in such a
manner which results in best combination. This helps in cost reduction.
- Establishes Sound Organization - No overlapping of efforts
(smooth and coordinated functions). To establish sound organizational
structure is one of the objective of management which is in tune with
objective of organization and for fulfillment of this, it establishes
effective authority & responsibility relationship i.e. who is
accountable to whom, who can give instructions to whom, who are superiors
& who are subordinates. Management fills up various positions with
right persons, having right skills, training and qualification. All jobs
should be cleared to everyone.
- Establishes Equilibrium - It enables the organization to survive in
changing environment. It keeps in touch with the changing environment.
With the change is external environment, the initial co-ordination of
organization must be changed. So it adapts organization to changing demand
of market / changing needs of societies. It is responsible for growth and
survival of organization.
- Essentials for Prosperity of Society - Efficient management
leads to better economical production which helps in turn to increase the
welfare of people. Good management makes a difficult task easier by
avoiding wastage of scarce resource. It improves standard of living. It
increases the profit which is beneficial to business and society will get
maximum output at minimum cost by creating employment opportunities which
generate income in hands. Organization comes with new products and researches
beneficial for society.
